Wednesday, November 30, 2011

³Caveat Emptor²... Buyer Beware

Chewing the fat yesterday with Tim (Thredgold) who has shared 24 years with me in the trenches - and I might add for those pessimists out there, through much worse conditions than now - Tim brought up a great point. Buyers may have forgotten that to buy a property… they have to actually make an offer or bid at the auction. Quite hilarious really, the fact that there are buyers circulating the inspections who just need to say...."We like it", then actually buy it!!

I quote Tim: 'We hear, at our opens, "…there's not much on the market…" and "…oh we think we'll buy in a year or two…" or "…it's a buyers market so we'll just keep looking…"

Tim goes on to advise buyers  'Well it is time to make an offer. Many current sellers are very keen to sell prior to Christmas... but unless you make an offer you'll never know what could have been....We'll then deal with your offer and present it to the owners... give you some feedback ... who knows you may just buy a property and end the drudgery of walking through opens week after week - and have something really special to celebrate this Christmas.'

Most sellers are happy to sell when they get a fair price. The sellers understand where the market is now. Conditions appear to have stabilised.
Over the many years, I've seen buyers put their lives – and the lives of their families - on hold. Always waiting for the end of the boom, the bottom of the market, the freeing up of finance, the drop in interest rates, and so on. There are 101 reasons not to do anything, but unfortunately we only get one crack at life and in these times our lives can simply pass us by.

Buyer beware, don't put your lives on hold, seize the day and make the move. This is a great time for you to get hold of a beautiful piece of real estate and make it your home.

Next week we'll have an end of year wrap. I caught up with Craig James (CommSec's Chief Economist) on Thursday and now have all the latest facts and predictions from those in the know.

Looking to buy or sell? Call or email me, Anthony Toop
0418 824 188
anthony.toop@toop.com.au
or follow me on Twitter: @Anthony_Toop

Wednesday, November 23, 2011

November is now done....sales have really stepped up as buyers seem to have switched on again....hooray.

Some massive auction results last week with another $3+million sale under the hammer and a $2 million sale with 10 registered bidders! There are buyers everywhere, so we need to hear from you if you're selling.

So… what if you need to sell before Christmas?

From this week on we have modified selling strategies and shortened auction campaigns to get sales across the line for our sellers. This is a time of the year that clients really want to see some action and that takes a lot of focus from our end.

Suppliers - like sign writers and printers - are harder to pin down, yet unlike previous years we are gearing up for a busy end to 2011. We sense that the sellers are in the mood to do the deals and buyers recognise that this is as good a time as ever to just get on with their purchase, and are doing just that.

The peak amount of interstate and international activity occurs in January and we want to ensure our clients get access to these buyers....lots of "lucky sales" in January every year.

So.... here at Toop's it's flat out right to the line on Christmas Eve, a few days off through to New Years Eve, and then pedal to the metal making things happen for those wanting sale results with both online and traditional marketing machines running flat out.

Video commercials are absolutely gold for selling online over this period and our Toop.TV crew are busy getting commercials edited and online for this busy time. Our Toop.TV crew are so exhausted that I have insisted they take a couple of weeks off, so ring ASAP to get the video commercial ads done prior to Christmas and online straight away. They're an incredible way to sell property yet help save buyers coming through your home over this period. A great qualifier and buyer filter too.

So make your move now, get organized and get your sale happening. There's a saying, "if it is to be, it is up to me", we just need to make these sales happen for you but we can't do it with out your help. Ring now

Christmas at Toop's is about getting that sale done for our clients.....I hope we can deliver for you.

Anthony Toop
Follow me on
Twitter: @Anthony_Toop
or call 0418 824 188

Thursday, November 17, 2011

Landlords impacted by State Government cut backs....

Massive Delays....Residential Tenancies Tribunal blame cuts in funding for massive delays getting cases heard and bond refunds to Landlords with claims against the tenant.

TRIBUNAL DECISIONS.....The imbalance between outcomes for Landlords verses tenants anecdotally seems to be widening too as decisions coming from Tribunal Hearings often leave landlords shaking their heads in amazement.

The situation has got so bad that Landlords commonly accuse agents of "working for the Tenant" as they are advised of the Tribunal formula's applied to claims, the delays and of the surprise decisions being reached in this tribunal environment. For the novice, it is quite an eye opener where logic and fairness seem to have little to do with reality.

This week on www.toop.tv we open up the discussion on some of the weird stuff going on in this space. If you are a landlord, you need to log on and watch this weeks show.

Sales.....yep the year is nearly done and South Australia will end up in a reasonable space to finish 2011.

I was talking to some really smart real estate mates on Tuesday night at a function -  one is deeply involved in Whyalla....he says the predicted demand from the much talked about mining boom is already under way up there, and to move quickly.

At the same function I was getting the inside goss an where those close to market forecasting think things are tracking in property....18 months is the timeframe "smart people" are now honing in on as to the start of the next cycle for South Australia.

If you haven't already done so, you must log on (www.toop.tv click Fireside Chat) and watch my Ralph Norris MD & CEO of Commonwealth Bank interview on his predictions and advice to us. We are following this closely as our market is caught up between Europe's meltdown and our own great infrastructure and mining announcements.

I have got the Gurus booked in for Toop.TV in 2 weeks time so I am very excited about getting a December update on all things property for you all for the end of the year.

Last Friday I was a guest on Your Money Your Call with Chris Gray in Sydney, the night went well where we got great national coverage on the fact Australians should be investing in South Australia. The phones have since been ringing from people around Australia considering investing here....shhhhh, don't tell them about the Residential Tenancies Tribunal, hey!

REMINDER; the year is nearly done.... if you are selling this year, time is almost up. Call us NOW to sell.

Anthony Toop
Follow me on Twitter:
@Anthony_Toop
or call 0418 824 188

Wednesday, November 09, 2011

Curtain comes down on 2011... has the boom returned?

Last weekend you could have been excused for thinking the market had changed and it was party time again for real estate. Toop&Toop again had an incredible weekend with 7 out of 8 auctions selling, and we were on fire. So has the market  suddenly changed since the rates dropped?

...while on another key matter, do sellers realise that we are only a few weeks away from missing the boat for 2011 sales.
First the market. Yes, Toop&Toop kicked butt last week. A better than boom weekend of auctions backed up with a string of multi million dollar private sales.

BUT no, the market has not fundamentally changed, and is unlikely to for quite a while I expect. What has happened?  Sellers have worked out the advantages are enormous for getting good advice early on in their sale. The days of flippant buyers have well gone and we are operating in a predictable and less emotional market. Good decisions early are making a difference.

Auctions are working in classic style as owners become educated that a well priced property will sell before, at, or straight after auction, and competition is likely if the market is good enough. It is the competition that sorts out the final sale result as witnessed last weekend. The final sale price has been very fair and in recent cases has resulted in a pleasant bonus for auction sellers. The auctions are starting to fire up again.

Buyers are active, and as predicted last week in this column, they are again committing since the rate drop last week.

The curtain is closing on 2011 sales. Sellers, get your skates on. Toop&Toop are launching our special end of year selling campaigns next week to ensure a sale this year. Sellers must get under way urgently if your sale is to be done properly. Selling late December is ok but we do run into issues with some suppliers in getting properties prepared.

We will finish the year on higher sales volumes, while prices appear to have stabilised....this is the return of the balanced market.

Call me or any of the Toop team over this weekend if you want to get things moving, we need more properties urgently.

Anthony Toop
follow me on Twitter:
@Anthony_Toop
or call on 0418 824 188

Thursday, November 03, 2011

Rates drop, so will prices rise??

First let's see what the experts say… RP Data provide advice to the Reserve Bank so they have to be listened to when it comes to their views on the property market. We interviewed RP Data live on Toop.TV Wednesday, and if you are selling or buying, you really need to log on to www.toop.tv and hear their 'post interest rate drop' predictions first hand.

Here are 5 key points from their latest national market report ....
1. "Australian housing market correction slows in September.... capital city home values had their best result in 7 months (down just -0.2 per cent seasonally-adjusted and raw)"

2. "With home buyers budgeting on 2-3 rate hikes in 2011 that never eventuated, the housing market has been weighed down by concerns about family's future finances. The RBA's apparent switch to an "easing bias" ........"housing market has undergone a controlled correction."

3. "Notwithstanding the extraordinary hysteria whipped about house price bubbles and so forth, the fact is that the gross total return of 0.7 per cent generated by Australian housing in 2011 is very reasonable in the scheme of things. Indeed, it looks positively attractive compared to the extreme volatility, and stunning losses, sharemarket investors have had to endure."

4. The number of homes advertised for sale remains high, which RP Data's Tim Lawless suggests is one of the key explanations for the secular softness.

5."We are counting almost 300,000 homes advertised for sale across Australia, which is more than 30 per cent higher than the same time last year.  The large number of properties available for sale implies buyers will continue to hold the balance-of-power at the negotiation table," he said.

These comments are based on a national perspective and South Australia has been consistently tracking mid ground when you drill down in the reports. Yet again South Australia is steady and one of the least volatile markets in the country, which in turn is one of the most stable in the world, we should be very happy.

What is not apparent to those outside the industry is that volumes of transactions in September 2011 were at an 11 year low. This means less people have sold and purchased while stock levels have ballooned. Ironically the weekend Advertiser last week carried just 2000 opens which is down substantially on last year. This is possibly explained by the dynamic of less new stock being released this spring compared to previous years (sellers put off because prices are not as they were previously), and the fact new releases typically have an initial advertising budget for press, while old unsold stock remains without ongoing advertising budgets and seem to get parked on internet portals like realestate.com.au . Many sellers cross their fingers hoping for that miracle buyer who has been in a coma for 12 months.

There are winners and losers in this market.  Winners sell first, then buy. Sellers invariably get caught with optimistic expectations of their own property. This market is sensational for those who sell first. Buying additional property or a first home, you are winners over boom time buyers. When buyers and selling in the same market you are in a neutral position but there are less costs when prices are lower.  

Sellers who understand and adapt to current conditions are getting sales in a short space of time. Buyers are plentiful, they are active and they are buying, but they are ultra discerning.

My predictions based on the rate drop... we will experience an immediate adrenaline rush of activity for a few weeks followed by a progressive return of the first home buyer to the market. Activity and sales volumes will rise for November. Investors will gradually return in search of the relative safety and simplicity of residential property investments.  Lower funding costs and improved rents are attractive. There will be little capital appreciation with possible exceptions such as our underpriced top end and our mining affected markets. The downside risk of SA property has been reduced given our past year's price and volume adjustments. International financial woes will keep sentiment nervous for 2012 while local infrastructure projects will help offset these negative influences in SA.

Steady as we go for an extended period with (what I term) a "boring" market for South Australia, where "boring" will be considered awesome news for the long term property investor.

Invitation... Next Thursday 10th we invite all Golden Grove residents to our community opening of our brand new office. From 5.30pm come along and check out our Historic Golden Grove Homestead at 8 Sandstock Blvd - all GG residents welcome.

Anthony Toop
Follow me on Twitter: @Anthony_Toop